US markets tumbled overnight, led by a sharp decline in technology stocks. Renewed inflation concerns, fueled by strong services sector data, sparked a sell-off, pushing the Nasdaq down nearly 2% and raising questions about future interest rate hikes. This sell-off has created uncertainty in global markets and has investors on edge.
US Market Decline
The US stock market experienced a significant sell-off, particularly in the technology sector, due to rising inflation concerns. The S&P 500 fell 1.2%, while the Nasdaq dropped 1.9%, with tech giants like Nvidia and Tesla leading the decline.
Nvidia down 6.2%
Tesla down 4.1%
Inflation Concerns
Inflation worries resurfaced after the release of US ISM services sector data, which indicated continued expansion and rising prices. This sparked fears that the Federal Reserve might maintain its hawkish stance on interest rates, potentially impacting future economic growth.
US ISM Services PMI data shows continued expansion
Price metrics surge
ASX Impact
The ASX is expected to open flat today, following the US market downturn and lingering inflation concerns. The potential impact of the US sell-off on local sentiment is creating uncertainty for investors.
ASX futures point to a flat open at 8270
Four-day rally loses momentum
US Treasury Yield
The yield on the US 10-year Treasury bond rose to 4.68%, reflecting increased investor anxiety about inflation. This rise in yield suggests that investors are demanding higher returns on government debt due to perceived risks.
US 10-year Treasury yield rises 5 basis points
Yield reaches 4.68%
Brent Crude Oil
Brent crude oil prices climbed back above $77 per barrel. This increase could be attributed to various factors, including geopolitical tensions and supply concerns.
Brent Crude back above $77
Oil prices regain ground
Iron Ore Price
Iron ore prices saw a slight increase to $96.75 a tonne, despite remaining near a four-month low. This modest recovery could be due to increased demand from China.
Iron ore rises to $96.75
Price remains at a four-month low
Australian Dollar
The Australian dollar weakened slightly against the US dollar overnight, falling by 0.2%. This decline could be linked to the broader risk-off sentiment in global markets.
AUD weakens by 0.2% against USD
Dollar impacted by market sentiment
WiseTech Commentary
Commentary on WiseTech highlighted the importance of company culture for sustained success. This suggests that strong internal values contribute to overall performance.
CBA Share Price
CBA’s share price is being influenced by superannuation funds increasing their holdings. This increased investment from institutional investors is seen as a positive sign. Super funds have also increased CBA holdings.
